He added: “I have spoken at length to my solicitors and they will now start legal proceedings in relation to their coverage.

“Their coverage was inaccurate, misleading and damaging to my reputation and I am furious at their handling of the whole issue. I will be pushing for a full retraction in next week’s paper, associated costs and a donation to Springhill Hospice.

“Like other news organisations, I invited the Rochdale Observer three weeks ago to come and personally review my expenses.

“They chose not to take up the opportunity to ask any questions.

"After 25 years as an elected councillor and MP, this is the first time that I have felt it necessary to take action against local media.”